Huawei is one of the world's largest makers of telecom equipment, China's most important technology company and a national hero. The arrest of a senior executive at such a marquee company, over potential violations of U.S. sanctions on Iran, threatens to intensify the U.S.-China trade conflict just days after leaders had agreed a truce.

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With the U.S. finally making a move against Huawei, the Justice department and the Trump administration have an important question to answer: What do we want out of this?

It's not clear that they know. Before Huawei, smaller Chinese telecom-equipment maker ZTE Corp. was caught breaching U.S. sanctions. ZTE apologized and was let off with a fine and a seven-year suspended sentence on the condition that it change its ways and fire some people.

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In yet another example of the transactional nature of the current U.S. administration, ZTE was able to wriggle out of that procurement ban by paying an even bigger fine. The message to the world was clear: The U.S. rule of law is for sale.

This ham-fisted approach to punishing, forgiving, and then re-punishing ZTE must not be repeated if the U.S. wants to be taken seriously.

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... the U.S. should move forward with plans to set up stricter protocols on what it will allow China to buy. The Export Control Reform Act has similarities with the Wassenaar Arrangement, a multinational deal that restricts the flow of weapons and sensitive tools, such as semiconductor manufacturing equipment.